tomeng/iStock Unpublished via Getty Images
One of the biggest IPOs ever on the European continent is due at the end of the month as demand for the much-anticipated IPO appears to be strong.
After Volkswagen (OTCPK:VWAGY) confirmed this Price and date of Porsche AG (OTCPK:POAHY) debut in Frankfurt, more details on the listing were published in Porsche’s on Tuesday newly published prospectus.
The newly-released document confirms details provided by Volkswagen (OTCPK:VWAGY) earlier in the week, such as its target valuation, number of shares and distribution of preferred shares. As a tribute to its popular model, the company plans to issue 911 million shares, divided evenly between preferred and common shares. According to the terms of the IPO, 25% of the preferred shares are held by Porsche Holding Stuttgart GmbH. Therefore, on September 29, a smaller portion of the non-voting preferred shares will be listed. The price range for these shares has been set at €76.50 to €82.50, which corresponds to possible over-allotments of €8.71 billion to €9.39 billion.
“We are on track – we believe that Porsche AG, with its robust business model and compelling financial results, is ready to launch its IPO,” said Lutz Meschke, Vice President and Chief Financial Officer of Porsche AG on Tuesday.
The Qatar Investment Authority (QIA) will be the “cornerstone” of the IPO, committing to acquire 4.99% of the preferred shares for €1.74 billion to €1.88 billion, subject to IPO pricing. Norges Bank Investment Management, T. Rowe Price and ADQ joined the Middle Eastern Sovereign Wealth Fund by committing €750m, €750m and €300m respectively. The offer period, which began on Tuesday, is expected to end one day before the September 29 IPO.
“We are now on the home straight with Porsche’s IPO plans and welcome the commitment of our cornerstones,” said Volkswagen CFO Arno Antlitz.
It’s worth noting that ahead of the listing, analysts have valued it at up to $85 billion. Nonetheless, the IPO will be one of the largest ever to hit a European stock exchange.
According to bookrunners speaking anonymously to Reuters, the demand for the listing easily exceeds the full transaction size. The report indicated that the listing’s lower-than-original-forecast pricing “is being well received in the market,” with sources close to the IPO noting significant institutional demand. However, retail demand remains unclear.
The German automaker has recruited BofA Securities, Citigroup, Goldman Sachs and JP Morgan for an all-American list of global coordinators and joint bookrunners for the IPO. Meanwhile, BNP Paribas, Deutsche Bank, Morgan Stanley, Santander, Barclays, Société Générale and UniCredit have been mandated as joint bookrunners, while Commerzbank, Crédit Agricole, LBBW and Mizuho have been appointed as co-lead managers. Mediobanca is designated as the financial advisor to Porsche (OTCPK:POAHY).
Volkswagen (OTCPK:VWAGY) will receive all IPO proceeds of up to €75 billion, which is expected to range between €18.1 billion and €19.5 billion.
Read more about the latest EV model development from Volkswagen.
Comments are closed.